- Stellar, a public blockchain and a peer-to-peer virtual currency network, has joined the RWA Foundation, a decentralized community for real-world assets.
- The Real World Assets (RWA) Foundation is an organization that connects crypto enthusiasts with tokenized assets supported by leading brands in the tokenization industry.
In a recent announcement on X, the Real-World Asset (RWA) Foundation revealed that the Stellar Network has officially joined as a founding member of the RWA Foundation DAO. This foundation is dedicated to establishing standards and best practices that encourage the adoption of tokenization for both crypto enthusiasts engaging with RWAs and asset issuers aiming to bring their products onto the blockchain.
Simply put, RWAs are traditional assets such as real estate and artwork represented as digital tokens on a blockchain. The Security Token Market established the RWA Foundation in November. Other founding members of the RWA Foundation include Securitize, Ava Labs, Polygon Labs, Mountain Protocol, IXSwap, and Swarm.
Strengthening Real-World Asset Issuance with Stellar
Since it was founded in 2014 by Jed McCaleb, Stellar has been at the forefront of the development and growth of its network. This public, open-source blockchain is supported by a worldwide community of developers who work to create on-chain infrastructure. Their efforts aim to provide global payment solutions for remittances, humanitarian aid, and cross-border transactions.
Furthermore, Stellar serves as a driving force for the expansion of decentralized finance (DeFi) applications and is actively involved in the tokenization of real-world assets. The foundation’s overarching mission is to enhance access to global financial markets, ensuring that these opportunities are within reach for individuals regardless of their geographical location.
Stellar is currently utilized by several prominent issuers in the real-world assets industry. Notable examples include WisdomTree Prime, a retail-oriented application that provides access to 13 ‘40 Act funds hosted on the Stellar platform. As of now, it manages assets totaling $17.2 million, part of a broader figure of $28 million on the Stellar network. Another significant player is Franklin Templeton, a globally recognized leader in asset management. Their BENJI token, originally minted on Stellar, boasts impressive assets under management, $267 million out of a total of $463 million on the blockchain.
Adding to this momentum, during last month’s Meridian conference organized by Stellar, Paxos revealed its intention to launch a yield-bearing stablecoin on the Stellar network, emphasizing Stellar’s importance for both retail participants and institutional issuers.
The latest statistics from the third quarter of 2024 highlight Stellar’s impressive progress: the total supply of tokenized real-world assets has now surpassed $590.4 million, while related transaction volumes have exceeded $3 billion. Additionally, the network boasts around 9 million total addresses, indicating a significant increase in asset onboarding and investor participation in the blockchain ecosystem.
However, Stellar (XLM) has declined 26.29% in the past week and 19.70% in the last 24 hours, according to our data. It is currently trading at $0.3718. Despite these setbacks, Stellar’s reputation for providing low-cost and efficient transactions may support XLM’s potential for future growth.
